money supply, banking & financial institutions section 3 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 16 [UPSC (Pre) 2018]

Consider the following statements.

1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.
2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.
3. Treasury bills offer are issued at a discount from the par value.

a) Only 3

b) 1, 2 and 3

c) Only 2 and 3

d) Only 1 and 2

Question : 17

Which of the following tools does RBI use for monetary policy?

1. Forex Swap
2. Liquidity Adjustment Facility (LAF)
3. Market Stabilization Scheme
4. Sterilization

a) (i), (iii) & (iv) only

b) (iii) & (iv) only

c) (i), (ii) & (iii) only

d) All of the above

Question : 18

A company undertakes a public issue which means that _____ .

1. Shares of the company will be issued only through public sector organizations like banks/central financial institutions etc.
2. Shares of the company will be issued to general public through the primary market.
3. means some stakeholders/promoters are leaving the company and wish to sell their stock to general public.

a) 2 only

b) 1 only

c) 3 only

d) All 1, 2 and 3

Question : 19

The Reserve Bank of India regulates the commercial banks in matters of:

1. liquidity of assets
2. branch expansion
3. merger of banks
4. winding-up of banks

a) 2, 3 and 4 only

b) 1 and 4 only

c) 1, 2 and 3 only

d) 1, 2, 3 and 4

Question : 20

Consider the following in regards of types of loan:

1. Draft Loan
2. Term Loan
3. Cash credit
4. Overdraft

a) 2 only

b) 1 only

c) 3 only

d) 4 only